Average Annual Total Returns4As of Quarter End 06/30/2015

Expense Ratio and Sales ChargeAs of 10/01/2014 (updated annually)

Gross Expense Ratio5,6

3.58%

Net Expense Ratio

1.25%

Max Initial Sales Charge

5.75%

CDSC

0.00%

12b-1 Fee

0.30%

Performance data represents past performance, which does not guarantee future results. Current performance may differ from figures shown. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares.

The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Strategy, Benefits

Strategy

The derivatives market is a relatively efficient way to gain
commodities exposure, without taking on the costs and logistical
challenges of direct commodities investments.

Portfolio managers identify investment opportunities through
a combination of top-down analysis of global growth and financial
trends and bottom-up research on the commodities market,
including supply, demand, price, momentum and seasonal
dynamics.

To help manage volatility and satisfy asset coverage
requirements, the portfolio managers also invest in securities of
the U.S. government, its agencies and instrumentalities and other
fixed income securities.

Benefits

Diversification. With its focus on commodities, the fund
may help further diversify portfolios heavily weighted in stocks
and bonds.

Inflation Protection Potential. An allocation to the fund
may help a portfolio preserve purchasing power when inflation
rises. Commodities, particularly food and energy, historically
have represented a significant portion of the Consumer Price
Index (CPI), one of the leading indicators for the U.S. inflation
rate.
i

Growth Potential. The fund provides access to a market
with attractive growth potential. As populations grow and
economies expand, notably in Asia and Africa, demand for
commodities will likely follow.

Experienced Management. The fund’s portfolio
managers have over 60 years of combined industry experience, with
extensive backgrounds in commodities and asset allocation.

i. Source: U.S. Bureau of Labor Statistics. CPI data is based on
the All Items Consumer Price Index for All Urban Consumers for the
U.S. City Average. Indexes are unmanaged, and one cannot invest
directly in an index.

Results

Hypothetical $10K Investment

Investing in the Fund

What Are the Risks?

All investments involve risks, including possible loss of
principal.

Investing in physical commodities, either directly or through
complex instruments such as commodity-linked total return swaps,
commodity futures, commodity index futures and options on
commodities and commodities index futures, presents unique risks,
is speculative and can be extremely volatile.

Market prices of commodities may fluctuate rapidly based on
numerous factors, including: changes in supply and demand
relationships; weather; agriculture; trade; domestic and foreign
political and economic events and policies; diseases; pestilence;
technological developments; and monetary and other governmental
policies, action and inaction.

Derivative instruments involve costs and can create economic
leverage in the fund’s portfolio, which may result in
significant volatility and cause the fund to participate in
losses (as well as gains) in an amount that significantly exceeds
the fund’s initial investment.

The fund may not achieve the anticipated benefits and may
realize losses when a counterparty fails to perform as
promised.

Bond prices generally move in the opposite direction of
interest rates. Thus, as the prices of bonds in the fund adjust
to a rise in interest rates, the fund’s share price may
decline.

Foreign investing carries additional risks such as currency
and market volatility and political, social and economic
instability, risks which are heightened in less developed or
emerging market countries.

These and other risks are described more fully in the
fund’s prospectus.

Minimum Investment

$1,000.00

How Financial Advisors Help You

Speak to your financial advisor about whether this fund is appropriate for you. If you don't have a financial advisor, request a referral.

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Important Legal Information

Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total Returns With Sales Charge: returns reflect the deduction of the stated sales charges. Total returns, distribution rate, and yields reflect any applicable expense reductions, without which the results for those impacted funds would have been lower.

For more information on any of our funds, contact your financial advisor or download a free prospectus. Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

Most Franklin Templeton funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance. In general, Class A shares have a maximum initial sales charge; Class B shares have a contingent deferred sales charge which declines over a period of six years, thereafter it is eliminated; Class C shares have a 1% contingent deferred sales charge; Class Z, Advisor Class and Class R6 shares have no sales charges nor Rule 12b-1 fees; Class R shares have no sales charges, but do have a Rule 12b-1 fee.

All investments involve risks, including possible loss of principal. Investing in physical commodities, either directly or through complex instruments such as commodity-linked total return swaps, commodity futures, commodity index futures and options on commodities and commodities index futures, presents unique risks, is speculative and can be extremely volatile. Market prices of commodities may fluctuate rapidly based on numerous factors, including: changes in supply and demand relationships; weather; agriculture; trade; domestic and foreign political and economic events and policies; diseases; pestilence; technological developments; and monetary and other governmental policies, action and inaction. Derivative instruments involve costs and can create economic leverage in the fund's portfolio, which may result in significant volatility and cause the fund to participate in losses (as well as gains) in an amount that significantly exceeds the fund's initial investment. The fund may not achieve the anticipated benefits and may realize losses when a counterparty fails to perform as promised. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the fund adjust to a rise in interest rates, the fund's share price may decline. Foreign investing carries additional risks such as currency and market volatility and political, social and economic instability, risks which are heightened in less developed or emerging market countries. These and other risks are described more fully in the fund's prospectus.

Footnotes

For performance reporting purposes, the inception date for Classes A, R, R6, Z, and Advisor Class shares of all Franklin Templeton Funds is the date of effectiveness of the fund's registration statement or the first day the fund commenced operations. For Classes B and C shares, generally the inception date is the first day the fund commenced offering such shares. Exceptions: Franklin Income Fund Class B uses the inception date of the old Class B shares, renamed Class B1. Templeton Global Balanced Fund Classes A and C use the inception date of the old Class A and C shares, renamed Class A1 and Class C1. For Mutual Series Funds, Franklin International Small Cap Growth Fund, Franklin Large Cap Equity Fund and Franklin Pelagos Commodities Strategy Fund, the inception date for Classes A, B, C, R and R6 shares is the funds' oldest class', Z or Advisor, inception date. Franklin Money Fund Class R6 inception date is the first day it commenced offering such shares.

Net Asset Value — The amount per share you would receive if you sold shares that day.

Public Offering Price — Purchase price for each share of the fund on a given day. It includes the maximum initial sales charge, if any.

Prior to 1/10/14, the fund offered only a single class of shares without a sales charge and Rule 12b-1 expenses, Advisor Class shares. Performance figures reflect a restatement of the Advisor Class performance to include both the Rule 12b-1 fees and sales charges applicable to each share class as though in effect from the fund's inception. For periods after 1/10/14, actual performance is used, reflecting all charges and fees applicable to that class.

The Gross Expense Ratio does not include an expense reduction contractually guaranteed through at least 9/30/15. Please see the prospectus for additional information.

The Gross Expense Ratio does not include a fee reduction related to the Fund's investment in a Franklin Templeton money fund, as applicable. The fee reduction is contractually guaranteed through at least its current fiscal year end. Please see the prospectus for additional information.

For US residents only.

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